Advance Residence Investment (TSE:3269) Beneish M-Score : -2.81 (As of May. 02, 2024)

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What is Advance Residence Investment Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.81 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Advance Residence Investment's Beneish M-Score or its related term are showing as below:

TSE:3269' s Beneish M-Score Range Over the Past 10 Years
Min: -2.9 Med: -2.65 Max: -2.08
Current: -2.81

During the past 11 years, the highest Beneish M-Score of Advance Residence Investment was -2.08. The lowest was -2.90. And the median was -2.65.

Advance Residence Investment Beneish M-Score Historical Data

The historical data trend for Advance Residence Investment's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Advance Residence Investment Beneish M-Score Chart

Advance Residence Investment Annual Data

Trend

Jul12

Jul13

Jul14

Jul15

Jul16

Jul17

Jul18

Jul19

Jul20

Jul21

Beneish M-Score

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-2.58

-2.55

-2.81

Advance Residence Investment Semi-Annual Data
	Jan14	Jul14	Jan15	Jul15	Jan16	Jul16	Jan17	Jul17	Jan18	Jul18	Jan19	Jul19	Jan20	Jul20	Jan21	Jul21	Jan22	Jul22	Jan23	Jan24
Beneish M-Score	Get a 7-Day Free Trial															-2.81	-	-2.67	-	-

Competitive Comparison of Advance Residence Investment's Beneish M-Score

For the REIT - Residential subindustry, Advance Residence Investment's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Advance Residence Investment's Beneish M-Score Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Advance Residence Investment's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Advance Residence Investment's Beneish M-Score falls into.

Advance Residence Investment Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Advance Residence Investment for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.75

0.528 * 1.0007

0.404 * 0.9873

0.892 * 0.9816

0.115 * 0.9862

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0137

4.679 * -0.014892

0.327 * 1.0042

-2.81

This Year (Jul21) TTM:

Last Year (Jul20) TTM:

Total Receivables was 円164 Mil.
Revenue was 円33,898 Mil.
Gross Profit was 円20,477 Mil.
Total Current Assets was 円25,159 Mil.
Total Assets was 円457,829 Mil.
Property, Plant and Equipment(Net PPE) was 円428,263 Mil.
Depreciation, Depletion and Amortization(DDA) was 円5,639 Mil.
Selling, General, & Admin. Expense(SGA) was 円2,615 Mil.
Total Current Liabilities was 円29,896 Mil.
Long-Term Debt & Capital Lease Obligation was 円192,789 Mil.
Net Income was 円14,843 Mil.
Gross Profit was 円0 Mil.
Cash Flow from Operations was 円21,661 Mil.

Total Receivables was 円223 Mil.
Revenue was 円34,533 Mil.
Gross Profit was 円20,874 Mil.
Total Current Assets was 円24,754 Mil.
Total Assets was 円457,569 Mil.
Property, Plant and Equipment(Net PPE) was 円428,353 Mil.
Depreciation, Depletion and Amortization(DDA) was 円5,561 Mil.
Selling, General, & Admin. Expense(SGA) was 円2,627 Mil.
Total Current Liabilities was 円30,757 Mil.
Long-Term Debt & Capital Lease Obligation was 円190,870 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(164.256 / 33898.029)	/	(223.134 / 34533.088)
	=	0.004846	/	0.006461
	=	0.75

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(20874.306 / 34533.088)	/	(20476.763 / 33898.029)
	=	0.604473	/	0.604069
	=	1.0007

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (25159.123 + 428263.394) / 457829.38)	/	(1 - (24754.366 + 428353.043) / 457568.755)
	=	0.009626	/	0.00975
	=	0.9873

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	33898.029	/	34533.088
	=	0.9816

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(5561.16 / (5561.16 + 428353.043))	/	(5638.721 / (5638.721 + 428263.394))
	=	0.012816	/	0.012995
	=	0.9862

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(2614.562 / 33898.029)	/	(2627.414 / 34533.088)
	=	0.07713	/	0.076084
	=	1.0137

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((192789 + 29896.366) / 457829.38)	/	((190870 + 30756.727) / 457568.755)
	=	0.486394	/	0.484357
	=	1.0042

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(14843.347 - 0	-	21661.478)	/	457829.38
	=	-0.014892

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Advance Residence Investment has a M-score of -2.81 suggests that the company is unlikely to be a manipulator.

Advance Residence Investment Beneish M-Score Related Terms

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Advance Residence Investment (TSE:3269) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Advance Residence Investment Corp (TSE:3269) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

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Address

3-26 Kanda-Nishikicho, Chiyoda Ward, Tokyo, JPN, 101-0054

Website

http://www.adr-reit.com

Advance Residence Investment Corp is a real estate investment trust that engaged in the property leasing business. It was created through consolidation type merger between the former Advance Residence Investment Corporation and Nippon Residential Investment Corporation. In order to secure stable earnings and steady growth in assets under management, the company procures funds through loans, issuance of investment corporation bonds, issuance of units, and other means of financing for purchasing real estate properties and repaying its debts. The company primarily invests in residential real estate properties located in central Tokyo, and the Tokyo metropolitan area.

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